The close in markets eastside Hawthorne/Sellwood are very active and have seen very little if any price drop. Location is #1 as it always is when you buy and sell. Check www.walkscore.com but prices under $500,000 on the eastside have been selling. The westside some pocket areas are still seeing a slight rise in prices but again it is under $500,000 with most buyers trying to get the loan under the $417,000 cap for the best interest rate and keep out of the jumbo loans. I have been showing Sellwood and in the price range of $250-$400,000 I would think there is less than a one month supply of homes for sales when they are selling quickly. You cannot wait for the prices to come down. If rates go up 1/2 point then the house price you are looking at needs to drop 10% to keep your payment the same. Do you think home values are going to drop and rates are going to stay this low. Rates are at a 50 year low and will go up. The first time buyer $8,000 credit is getting many buyers to buy their first house. This $8,000 is going to stop Nov 30,2009 so you close before this date to get it. You can buy a house today and file and amended return for 2008 and get your money back this year. Could you use the money? Know one knows when we are at the low point until 6-9 months after it bottomed out. I can be specific to area and price range and neighborhoods but it is very hard to make wide general statements about a large area but Portland is made up of quite a few small price points for neighborhoods that are very hard to generalize. You have to have experience to know the difference.
Give me a call and I can further explain it.

I can email you RMLS stats for each period if you'd like, just let me know. It looks as though there is a YTD change of -1.3% in home values for zip 97201. However, for the entire period you are inquiring about I believe the change is around -3.3%.... more

Hi - I've attached a link to the current Market Action Report published by RMLS that will show you not only the area you've asked about, but all of the Portland Metro area as well. That way you can see how you compare with other areas too.

The economy does not affect neighborhoods in all the same way. The 97229 area is a strong stable area and has weathered the decline better than most. Although it may continue to fall a bit more, we are starting to see stablization to begin.

They have a stronger set of schools, higher value homes on the average, parks and shopping plazas so as a whole, there is a lot to offer that keeps the vaue in place.

If the risks you refer to are that you purchase and your home falls in value, it will not be for long if this occurs as the market is proposed to being turning around the latter half of 09 and we are beginning to see some evidence that this is true.

The rental vacancy rate is what percentage of the time a unit or the the unit (depending on the number of units) is vacant. A terrific occupancy rate is right around 95%. I think there are a lot of neighborhoods that have few vacancies in Portland...including ther downtown area, NW, Pearl, Bellmont, Irvington, anything close to a college, Lake Oswego etc etc. On the flip side though, when you are attracting college students you will tend to get lower rents. These are all things that you should discuss at length with your realtor...and if you aren't currently working with one I would be happy to chat with you. I also have a terrific program on my computer that is an investment property analyzer...basically you plug in all the info about the property including purchase price, taxes, any HOA's, what the rents are, how much you are going to put down, your mortgage rate etc and it tells you the cap rate, gross rent multiplier, cash flow etc...I would be happy to run some scenarios for you if you would like. Otherwise good luck to you, with the rental market at an all time high, interest rates down, lots of inventory and the decline in prices it is such a terrific time to buy!... more

Keryn, In the past 3 years a condo was the best investment as investor drove the prices up and resold them before they closed ther first itme. As prices soared they have settled down and in the end a house in a prime location will be the best buy in my opinion. There are 5 units pending in 937 today and they are selling for $325+ a foot since they are 1 bedrooms and the penthouse also pending. You are right the medium sized units are about $600 a foot. The best buy is always a resale. None in there. If sales slow and the builder cannot sell out he will reduce the price and you are stuck. The best building to go into is an almost sold out building with just a few units to finally sell. The building in the first year or two usually have maintenance problems so it is good to see what happens? Some of the building down there in the Pearl came out great. I am not sure why you like this building is it because of the energy savings? You will pay more for this life style and choice. There are foreclosures that are great deals but you have to be ready to buy today. Is your house free and clear so you are not making payments and you want your rent from the house to cover your payments at the 937? You can not compare houses and condos the life styles are different. You can always wait and see where the interest rates are? For every 1/2 point increase in rates at $200,000 your buying power goes down $19,000 so these units would have to really drop allot if the rates go up 1/2 point. Buyers are going to have a harder time qualifying for a loan after Oct 1, 2008 since rates will be adjusted off their credit score. That might affect you but it could affect your buyer of your home. You presently don't have your house for sale. The house on your street has been on the market for 3 months and has reduced the price only 10% how do you compare to that house? Good Luck,
Tom Inglesby, Broke
RE/MAX Equity Group Inc.
ABR, CRS, CLHMS
503-495-5416... more

I just negotiated a $379K home to sale for $372 K in 3 days and the other day I sold a $769 new custom in your area for $695K all cash buyer with 2 week close but I split the fee in 1/2 and we got the deal done.

Business is happening every day with buyers and sellers that are engaging the process and the market. Odds are you are too high on price or are being mis marketed. If you need more specific help please contact me directly at dirkknudsen@gmail.com.

Best wishes to you!

Regards;

Dirk T Knudsen
Re\max Metro
President
#1 Rated Re\Max team in Oregon... more

It is doubtful that the sellers will consider "discounting" the house just because the lot cannot be divided. You say that it is a residential property in a residential neighborhood with no plans on the books to increase density by building multi-family units. So the house is worth what fair market value will support today.
In the future, should plans be made to rezone that area for multi-family dwellings, it is possible that a developer could want that property. Will that make it worth more? Possibly; but that is only conjecture.
Have you asked your agent what their opinion is?... more

Are you looking for an investment or a home? If you're looking to purchase a place that you are going to be living in for a few years (at least), then now might be a good time to buy, as there are several units available for negotiation. The waterfront has a great vision, it's just going to take a bit of time to reach. If you are looking for an investment, probably not the way to go at this point.... more

You should know that a study was done by PSU and they found that 34% of the purchasers in the past housing boom were from California. They are out of the market and thos ethat are moving here are cash poor and debt heavy.

The California Markets are down between 10 and 40% in value and a recent study predicted those values would continue to slide. Withe the exception of a few coastal towns and the Bay area West of 101 things are way off down there.

As goes California so goes the Oregon market ....or at least that 34% of it. It is interesting to note that year over year sales are off here by an average of about 35 to 40%. That correlation is pretty compelling. When our Soutern Friends do come back to the party we will see things get better here.

Medford, Ashland, Gold Beach, Roseburg....all being hit by the retreat of the California Markets.

Good question.

Hope that helps!

regards;

Dirk Knudsen
Re\Max Hall of Fame
#1 Rated Re\Max Team in Oregon... more

If the sales are not sufficient or if the ownership is in difficulty than the answer is likely yes. They appear to be all done and if they were all recorded as condos they will never be apartments fomr the standpoint that from a leagl perspective condos and apartments are differnet animals. One is for rent only and with a condo they can be rented or sold.

I would say that is the Hoyt Street Properties has untis for sale and can not sell them in this economy.....which is almost a certainty... they will rent them out.

I see 19 units for sale in the Pinnacle. The Pearl has a lot of inventory and has been a bit over built and has had to compete with new units uptown as well as new units by the dozens in the South Waterfront. not to mention all the condo conversions and new units in the "Burbs".

So I think you are partially right Linda. Having said that I would not worry too much.

There will never be affordable housing in the Pearl. Portland looks all politically correct on the surface but the Pearl fetaured the "rich getting richer" and tons of tax breaks to boot and it will always be that way. There will be a lot of short sales in the Pearl and some foreclosures but in the greater scheme of things it is almost built out and the neighborhood is pretty stable.

The Pearl District already a pretty great urban environment, but just as you thought it couldn't get better...

The Deschutes Brewery opened last week and seems to be the busiest place in town lately. I've tried the food and its pretty good (I recommend the fish and chips). The space is really great and represents the warehouse feel that we all have come to enjoy here. Plus its a pub you can go with a group of friends from any side of town or city and everyone will have a good time (its on Davis and NW 11th)

Of Course there is plenty of new housing options including The Metropolitan, The Casey, The 937 (which is looking pretty cool as they just unveiled the red glass on the decks today) and The Wyatt apartments.

The Pearl District Design Center is opening new studios each month on the north end of the district. Take a walk down 14th Ave, not many Pearlites go down that far, but its a pretty cool area. The entire area is for architecture, furniture, interior design and Art.

There is a new service in town that we have fallen in love with called Doston James Concierge Service.
For a totally reasonable price you can get a personal assistant to help with errands, fresh cut flowers in your house weekly, someone to drive you to the airport (or pretty much anywhere), a chef that comes to the house and makes a perfect after work feast and I have to admit they have the best personal trainer/nutritionist in town. I just checked www.dostonjames.com, its just one page but has a phone number.

Not to mention the Farmers Market, First Thursday, and you could always ride the train in fareless square all you want.

Best of Luck,
Brian Ramsay
Realty Trust Group Inc
Principal Broker... more

According to March '08's Market Action report, Portland is still seeing appreciation. I personally am selling my listings within a month of them being placed active on the market. I tend not to put too much stock in national publications, according to them the bubble should have burst in Portland years ago. We are ranked #1 as the place to live for retirement, we are consistently in the top ten for livability, and have a large influx of out-of-state buyers. Sure, we have slowed down to a more realistic market, but that is to be expected. Can the Portland market decline? It is quite possible, especially if our national economy does not improve or worsens. But as with the stock market, real estate will eventually cycle back.
As for your question about your transaction, I suggest you speak to your Realtor. He/she can provide you comps for the Hawthorne area as well as explain the legal ramifications of your contract.... more